How Do You Buy Property Deeds For Back Taxes Owed?
Buying property deeds, also known as tax lien certificates or tax deed sales, is a profitable way to diversify your investment portfolio. Buying property deeds for back taxes attracts investors because either you will receive a return on your investment if the home owner pays the back taxes plus the penalty, or you can own the property outright. Research is one of the most important factors in buying property deeds. Determine in which state and county you would like to purchase the property deed. Each state has different penalties and criteria for purchasing tax liens For example, a Georgia resident will pay a 20 percent penalty to repay a tax lien whereas in California the penalty is 18 percent. A penalty is the percentage the homeowner must pay in addition to the back taxes. Seek out states that have higher penalties to gain a higher return on your investment. (See Resources 3) The National Association of Counties website offers a breakdown of counties to further your search. (See Re
